In Indian civil procedure, the execution of decrees through the sale of property is governed by Order XXI Rules 64 to 94 of the Code of Civil Procedure, 1908 (CPC). These provisions outline the comprehensive legal framework for the attachment and sale of both movable and immovable properties to satisfy a decree. Understanding these rules is essential for law students and legal practitioners to navigate execution proceedings effectively.
LEGAL PROVISIONS AND PROCEDURES
-
Power to Order Sale (Rule 64)
Rule 64 empowers the executing court to order the sale of attached property, or a portion thereof, as necessary to satisfy the decree. The court must ensure that only so much of the property is sold as is sufficient to meet the decree’s requirements. This principle was emphasized in the case of Ambati Narasayya v. M. Subba Rao, AIR 1990 SC 119, where the Supreme Court held that the sale of a larger property than necessary to satisfy the decree is illegal. -
Sales by Whom Conducted and How Made (Rule 65)
According to Rule 65, sales in execution of a decree should be conducted by an officer of the court or by a person appointed by the court. The sale must be carried out by public auction in the manner prescribed. This ensures transparency and fairness in the execution process. -
Proclamation of Sales by Public Auction (Rule 66)
Rule 66 mandates that the court issue a proclamation before the sale, specifying the time and place of sale and providing details about the property. The proclamation must include information such as the property to be sold, any encumbrances, the amount due under the decree, and any other material details. The objective is to inform potential buyers and fetch the best possible price. -
Mode of Making Proclamation (Rule 67)
Under Rule 67, the proclamation should be made in the local language and published in a manner ensuring wide publicity. This may include affixing the proclamation on a conspicuous part of the property and in the court premises. The court may also direct publication in newspapers to reach a broader audience. -
Time of Sale (Rule 68)
Rule 68 stipulates that there must be a minimum of 30 days between the date of proclamation and the actual sale of immovable property. This interval allows interested parties sufficient time to participate in the auction, thereby promoting competitive bidding and fair price realization. -
Adjournment or Stoppage of Sale (Rule 69)
According to Rule 69, the court may adjourn the sale to a specified date and hour. If the sale is adjourned for more than 30 days, a fresh proclamation is necessary unless the judgment-debtor consents to waive it. This provision ensures that the sale process remains transparent and interested parties are adequately informed. -
Defaulting Purchaser Liable to Pay Loss on Resale (Rule 71)
Rule 71 holds a defaulting purchaser liable for any loss arising from the resale of the property. If the highest bid at the resale is less than the bid of the defaulting purchaser, the difference can be recovered from the defaulting purchaser. This rule deters frivolous bidding and ensures serious participation in the auction process. -
Decree Holder Not to Bid for or Buy Property Without Permission (Rule 72)
Rule 72 prohibits the decree-holder from bidding for or purchasing the property without the express permission of the court. This restriction prevents any conflict of interest and ensures that the sale process remains fair and impartial. -
Sale of Movable Property (Rules 74-81)
These rules detail the procedure for the sale of movable property, including livestock, negotiable instruments, and other tangible goods. The rules ensure that the sale is conducted in a manner that is fair and fetches a reasonable price for the property. -
Sale of Immovable Property (Rules 82-94)
Rules 82 to 94 specifically address the sale of immovable property. They cover aspects such as the sale of agricultural produce, the setting aside of sale on the ground of irregularity or fraud, and the confirmation of sale. These provisions ensure that the rights of all parties are protected during the sale process.
CASE LAWS AND JUDICIAL INTERPRETATIONS
-
Ambati Narasayya v. M. Subba Rao, AIR 1990 SC 119
Facts: In this case, the executing court ordered the sale of the entire property of the judgment-debtor, even though a portion of it was sufficient to satisfy the decree.
Issue: Whether the sale of a larger property than necessary to satisfy the decree is valid.
Held: The Supreme Court held that the sale of a larger property than necessary to satisfy the decree is illegal and violates Rule 64 of Order XXI. -
Desh Bandhu Gupta v. N.L. Anand & Rajinder Singh, AIR 1994 SC 1848
Facts: The property was sold in execution without proper proclamation, and the judgment-debtor challenged the sale.
Issue: Whether the absence of proper proclamation vitiates the sale.
Held: The Supreme Court held that non-compliance with the mandatory requirements of Rule 66 regarding proclamation renders the sale a nullity.
DOCTRINES AND PRINCIPLES
-
Doctrine of Lis Pendens
This doctrine, enshrined in Section 52 of the Transfer of Property Act, 1882, states that any transfer of property during the pendency of a suit is subject to the outcome of the litigation. In execution proceedings, this doctrine ensures that the rights of the decree-holder are not defeated by alienation of the property during the pendency of the suit. -
Principle of Natural Justice
The rules mandate that the judgment-debtor must be given notice of the execution proceedings and the